Price Setting and Price Adjustment in Some European Union Countries: Introduction to the Special Issue

Daniel Levy, Bar-Ilan University and RCEA
Frank Smets, European Central Bank and CEPR

Abstract. This introductory essay briefly summarizes the eleven empirical studies of price setting and price adjustment that are included in this special issue. The studies, which use data from several European countries, were conducted as part of the European Central Bank’s Inflation Persistence Network.

JEL Codes: D21, D40, E12, E31, E50, E52, E58, L11, L16, M20, M30

Keywords: Price Rigidity, Price Flexibility, Cost of Price Adjustment, Menu Cost, Managerial and Customer Cost of Price Adjustment, Pricing, Price System, Price Setting, New Keynesian Economics, Store-Level Data, Micro-Level Data, Product-Level Data